Bloomberg – Stuart Gulliver, HSBC Holdings Plc’s investment banking chief, said he sees a “significant opportunity” to boost revenue from hedge funds after Lehman Brothers Holdings Inc.’s collapse last year.
“We’ve seen a number of hedge funds moving their accounts to HSBC because their main concern is getting their money back,” Gulliver, HSBC’s head of global banking and markets unit, told investors at a Nomura Holdings Inc. conference in London today. “We can give people leverage in a segregated account, so they don’t have the operational risk that came out when Lehman Brothers failed.”
About 700 clients of Lehman’s European division, including MKM Longboat Capital Advisors LLP and GLG Partners Inc., lost control of assets when the investment bank filed the biggest bankruptcy in U.S. history last year. PricewaterhouseCoopers LLP, Lehman’s U.K. administrator, said last month it may take a decade to distribute $9 billion owed to creditors.